- Do You Pay Taxes on Pensions From the State You Retired In or the State You're Living In?
- Do You Pay State Income Taxes Based on Where You Lived or Where Your Income Was Earned?
- Is California Pension Income Taxable Outside California?
- Is Disability Income Taxable in New Jersey?
- Can I Be a Resident of Utah but Work in Texas and Not Pay State Income Taxes?
- Is Social Security Tax & Medicare Withheld From Retirement Income?
Georgia residents pay income tax on all wages generated in the State of Georgia. However, if income is earned out-of-state – even from employment in foreign countries – residents are still required to file Georgia state income tax. Under state guidelines, anyone subject to paying Georgia income taxes must file with the state, even if the federal government did not require that individual to pay taxes. Thus, income derived from Florida is subject to taxation in Georgia, even though Florida does not assess state income tax.
Exceptions to the Rule
Georgia residents who are not required to pay income tax in Georgia are not required to pay income tax on income generated in Florida. If the resident's total income falls below Georgia's standard deduction -- $2,300 for individuals and $3,000 for couples filing jointly in 2012 -- the resident does not have to pay state income tax. Personal exemptions might also preclude a Georgia resident from having to pay taxes. Exemptions fall in at $2,700 for single filers and $5,400 for those filing jointly; there's also a standard deduction of $3,000 for each dependent. Thus, if all earned income for a Georgia couple filing jointly who have a single dependent child is less than $11,400, the couple won't owe the state anything regardless of where the income was generated.
Assessing Tax on Income from Outside Georgia
Georgia residents who generate income through business or employment in another state are still subject to Georgia state income tax, though they may also be subject to income taxes on the state where the income was earned. Military personnel who opt to have Georgia listed as their home state will pay state income tax on all military income unless such income falls under special exemption guidelines. Members of the National Guard or any reserve unit who are deployed to a combat zone may exempt all income earned while in that combat zone from Georgia tax. All members of the Georgia National Guard or Air National Guard on duty for more than 90 days may file for a tax credit against that income when filing state income tax. Additionally, military personnel earning income in Georgia, but whose home of record is another state - such as Florida - will not have to file Georgia income tax unless income is derived from a source outside the military.
Part-year and Nonresident Considerations
Georgia changes it up a bit when it comes to part-year residents and nonresidents. Part-year residents must file Georgia Form 500, Schedule 3, to determine their tax liability for part-year income. Thus, an individual who lived in Pensacola, Florida for 7 months and then moved to Georgia would only be taxed on the time the individual worked in Georgia. In some cases, residents of another state may find income earned in Georgia taxable if non-residents are not required to file in Georgia if the income earned in Georgia exceeds the lesser of 5 percent of all earned income for the year or $5,000. So, in the reverse of the original question, if a Florida resident earned $10,000 in Georgia, that individual would have to file a Georgia state income tax return solely for the money earned from a source in Georgia.
Other Taxable Situations
Married couples filing jointly but living in different states, such as Georgia and Florida, face a unique situation. Since Florida has no state tax on income, Georgia law requires that a couple utilize a unique formula which requires dividing the Georgia portion of taxable income by the total income filed on their federal return to create an overall percentage of income taxable in the state. In most cases - especially if the income from the spouse in Florida is greater than the spouse in Georgia - the best path is for the couple to file separately to minimize tax liability.